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2018 (2) TMI 1536 - HC - Income TaxReopening of assessment - cost of improvement not reflected in the accounts of the assessee - Held that:- As is apparent from the petitioner's response to the Assessing Officer dated 15.12.2014, pertained to the sale of the property in question. We may recall, the petitioner had sold agricultural land situated at village:Hathijan during the said year. In his written communication dated 15.12.2014, the petitioner pointed out to the Assessing Officer that he had purchased the said land for cost of ₹ 81,000/under a registered sale deed and sold the same for ₹ 2.15 crores during the current year. Since the purchaser is not an agriculturist, he had made an agreement and the sale deed would be executed after conversion of the land into non-agricultural use. It was only after such examination of the sale of the land and related issues, the Assessing Officer passed the order of assessment making no disallowance. Entire issue was thus minutely examined by him. On this count, Assessing Officer cannot be allowed to reopen the assessment - the reasons lack validity and there was a degree of lack of application of mind on the part of the Assessing Officer when he conveyed that the cost of improvement of ₹ 5.09 lakhs was not reflected in the assessee's books of accounts. - Decided in favour of assessee.
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